News and analysis dedicated to the commercial litigation funding sector including regulatory issues, case developments, funding activities, and more.

Moneypenny and VoiceNation, leading virtual receptionist and phone answering providers, have appointed a new US Head of Marketing, Kris Altiere.  Kris joins with over 20 years experience in marketing, growing revenue and improving brand awareness for companies of all sizes from start ups to rebrands and merging companies, which she has done time after time with great success.

Kris has a proven track record in establishing the brands she works with as the trusted leaders in their area, with a well defined identity.  She is an award-winning integrated marketing communications strategist, specializing in connecting vision with innovative digital communication solutions to drive sales, build brand image, and secure customer loyalty. Her role at Moneypenny and VoiceNation will be to drive US awareness and further the growth and recognition of the US brands though strategic marketing strategies, further solidifying the value proposition and expanding into new markets.  

Richard Culberson, CEO at Moneypenny North Amercia comments: “We are delighted to welcome Kris to our award-winning company and are excited about the fantastic experience she will bring to Moneypenny and VoiceNation. She’s an excellent addition to our rapidly growing team and her experience and expertise will be invaluable as we continue to strengthen our brands in the US.” 

Kris comments: “I am really looking forward to joining the diverse and global team and utilizing my extensive background and expertise in Healthcare and Legal to further expand those areas within the US, while growing the existing client sectors.  I am excited be part of the Moneypenny and VoiceNation award winning culture and to help lead and grow our marketing team, as well as work with the amazing UK marketing teams, to help the business with our ambitious growth plans.”

About our market-leading brands

Moneypenny and VoiceNation are America’s leading virtual receptionist & phone answering providers offering 24/7 communication solutions. 

Collectively, Moneypenny and VoiceNation employ over 1,000 people handling millions of calls, chats and bespoke tech solutions for thousands of businesses of all shapes and sizes from sole traders right up to multinational corporations.

Rocco has been the underwriting director of Harbour Underwriting Limited since its incorporation and is also its managing director. He is a solicitor who has spent over two decades developing and providing insurance for a wide variety of legal disputes brought around the world. Apart from being a seasoned underwriter, he has also been a director in the investment team of Harbour Litigation Funding and so has vast experience of complex litigation risks.

Rocco is one of the leading figures in the dispute resolution community. Since 2003, he has served on numerous forums and Working Parties of the Civil Justice Council, a statutory body responsible for overseeing and modernising the civil justice system. He has also been the Chair of The Association of British Insurers’ Legal Expenses Committee.

Rocco is named in Band 1 as a Leading Individual in the Litigation Insurance Underwriters UK section ofChambers and Partners Litigation Support guide 2024 and also included in Lawdragon’s 2024 list of the 100 Global Leaders in Litigation Finance.

He is the general editor ofThe Law Society’s Litigation Funding Handbook and the author of several of its chapters, including that on dispute insurance. He is also the co-author of the chapter on legal expenses insurance in the practitioners’ textbookFriston on Costs.

Cases insured by Rocco include:

• various class actions (including securities claims) brought around the world, including in the UK, Australia and Canada
• professional negligence claims, including against lawyers, auditors and surveyors, such as in Levicom International Holdings BV v Linklaters (a firm) [2010] EWCA Civ 494
• intellectual property claims, such as Bentley 1962 Limited & Brandlogic Limited v Bentley Motors Limited [2019] EWHC 2925
• group actions, including environmental claims such as Barr v Biffa Waste Services Ltd [2012] EWCA Civ 312.

Rocco has been instructed over the years as an expert on dispute insurance, including by The Law Society in its intervention in a landmark case heard before the Supreme Court in Coventry v Lawrence [2015] UKSC50.

Company Name and Description:    Harbour Underwriting Ltd

Company Website: https://harbourunderwriting.com

Year Founded:  2016

Headquarters:  4th Floor, 8 Waterloo Place, London England, SW1Y 4BE

Area of Focus:  Commercial dispute insurance

Member Quote: “Litigation funders are sophisticated users of commercial dispute insurance. Even though they may well be confident of the prospects of the case they are funding succeeding, they know only too well how disputes can unexpectedly and inexplicably ‘take a turn’ for the worst and so they value having commercial dispute insurance in place from the outset.”

Litigation Capital Management (LCM) has released its full year audited results for the year ended 30 June 2024.

Highlights

• Net realised gains of A$32.2m (FY23: A$51.5m), with concluded case investments generating a 2.4x multiple of cash invested (MOIC)
• Total income of A$44.7m (FY23: A$67.7m)
• Profit after tax for the period of A$12.7m (FY23: A$31.5m)
• Dividend of 1.25p (FY23: 2.25p)
• Net assets of A$188.9m (FY23: A$183.5m) with cases conservatively valued at 1.9x cash invested
• Book value per share of 94.4 pence (FY23: 90.3 pence)
• Total new commitments of A$279m added in the period (FY23: A$176m)
• Fund I which comprises US$150m of external capital is fully committed and Fund II which comprises US$291m of external capital is 58% committed
• Share buyback program is 70% complete and remains ongoing

Strategic Update

• The Company is continuing its transition to asset management. Fund III marketing to commence towards the end of 2024 calendar year
• Preparing a disciplined and staged entry into the US market. 
• Acquired the intellectual property of a cutting edge legal finance Big Data/AI platform. Application of this technology to form part of US market entry and drive enhanced origination and investment diligence more broadly across the Company

Commenting on the results, Patrick Moloney, CEO of Litigation Capital Management, said: “We are pleased to have extended our industry-leading track record with successful case outcomes over the past 12 months driving our 13-year investment performance to an impressive 2.9x multiple of invested capital. Our transition from balance sheet funder to high return asset manager is progressing well, and we are looking forward to engaging with our LP investor base as we commence marketing for Fund III.

“With our London operations firmly established, having generated realisations of over £100m at a MOIC exceeding 3x, we are now strategically preparing for a disciplined and staged entry into the US market. As part of this strategic initiative, we’ve recently acquired the IP of a leading legal finance Big Data/AI platform. We see substantial opportunities to leverage this technology across our business in an asset class that is ideally suited for such innovation.“

The full result announcement and audited results can be read here.

Bay Point Advisors LLC, an Atlanta-based investment firm with a focus in niche private markets, is proud to announce the successful close of a $50 million capital raise for Bay Point Legal Fund II. This raise demonstrates Bay Point’s commitment to providing innovative investment solutions in the litigation finance sector.

The newly raised capital will be deployed to identify, invest, and support allocations across several litigation strategies, including primary and secondary mass tort acquisition, mass arbitrations, and single event cases.

“This marks a significant milestone in our 12-year journey. Bay Point Legal Fund II advances our initial vision for the firm of offering uncorrelated investment opportunities. We are excited to leverage our team’s expertise in litigation finance to continue our growth trajectory and deliver value for our investors,” said Charles Andros, President and Chief Investment Officer at Bay Point Advisors.

Bay Point Legal has a team of experienced professionals who possess deep expertise in legal, financial, and operational aspects of litigation finance. Bay Point believes that its investment approach and extensive network enable the firm to identify and capitalize on high-value opportunities.

Sean Coleman, Managing Director of Bay Point’s Legal Finance strategy, stated, “We are excited about the closing of Bay Point Legal Fund II. We have substantial capital to make an impact in the quickly evolving litigation finance vertical. Fund II will build on the creative and diversified, equity-type, mass tort investments made in Fund I while also expanding into new investment opportunities such as hybrid torts, abuse cases, mass arbitrations and single events. The fund has the potential to provide returns uncorrelated to equity markets, while also helping deliver equitable compensation to claimants who previously had limited avenues to justice.”

About Bay Point Advisors:

Founded in 2012 and headquartered in Atlanta, Georgia, Bay Point Advisors is a privately held investment firm with a strategic focus on niche markets often underserved by traditional financial institutions. Bay Point’s broad investment criteria allows for a dynamic response to market shifts. Committed to meeting the evolving needs of clients, Bay Point specializes in the prompt delivery of tailor-made capital.

About Bay Point Legal:

Bay Point Legal is the litigation finance arm of Bay Point Advisors. Specializing in equity investments in mass torts, single events, and mass arbitrations, the fund is dedicated to providing solutions that deliver strong returns while making a positive impact on the lives of those affected by corporate negligence. The legal fund leverages extensive industry experience and a robust network to identify, invest, and manage risk-adjusted investments in litigation finance.

Bryant Park Capital (“BPC”), announced today that Deminor Recovery Services (“Deminor”), a leading privately-owned global litigation funder, recently closed on an approximately $100,000,000 committed senior credit facility and asset-backed financing with two leading U.S. based asset managers focused on the legal assets industry.

BPC, a leading US-based middle market investment bank, served as the exclusive financial advisor to Deminor in connection with this transaction.

“Bryant Park Capital’s extensive knowledge of the financing markets, combined with their strong relationships and creative structuring capability have been invaluable and helped us complete this complex set of transactions that we believe will be transformative for our clients, employees and shareholders, reflecting how our business model and international footprint has expanded since our first external capital raise in 2021. Significantly, these investments, made on Deminor’s own balance sheet, will continue to enable Deminor to deliver fast decision-making and flexible funding terms, with final investment decisions resting with our Investment Committee. Bryant Park Capital has been an excellent partner for us and we greatly appreciate BPC’s guidance and support throughout the process,” said Erik Bomans – CEO, Deminor.

Commenting on Deminor’s platform and performance, Joel Magerman, Bryant Park Capital’s Managing Partner added, “Deminor has generated significant returns extending through multiple market cycles as a leading player in the litigation funding sector, and this capital raise will provide an opportunity to significantly expand the operating leverage of the Deminor platform internationally.”

About Deminor

Founded in 1990, Deminor is a leading privately-owned global litigation funder with 9 offices across continental Europe, London, New York, and Hong Kong.

Deminor has funded cases across four continents and 22 jurisdictions spanning 18 case categories as a leader in investment recovery, anti-trust, collective consumer, and commercial tort across 25 industries.

For more information about Deminor, please visit www.deminor.com.

Burford Capital, the leading global finance and asset management firm focused on law, today announces that Travis Lenkner has rejoined the company as a member of its Management Committee in the newly created role of Chief Development Officer.

Based in London, Mr. Lenkner is focused on Burford’s future and its ongoing transformation of the legal industry. His responsibilities involve identifying and executing strategic initiatives that drive growth and align with the company’s long-term objectives, and his areas of focus include law firm equity investments, the alternative delivery of legal services to corporate and individual clients, and legal tech, including AI.

Mr. Lenkner is a longtime global leader in the legal finance market, including as a launch partner of Gerchen Keller Capital, which Burford acquired in 2016. More recently, he co-founded and was Managing Partner of Keller Lenkner LLC; he also co-founded and was a Director of the firm’s European counterpart. In addition, he was Senior Counsel at The Boeing Company and a litigation and appellate attorney at Gibson, Dunn & Crutcher LLP. Mr. Lenkner was also a clerk for Justice Anthony M. Kennedy at the Supreme Court of the United States.

Christopher Bogart, CEO of Burford Capital, says: “We are pleased to welcome Travis Lenkner back as a member of the Management Committee in the newly created role of Chief Development Officer, where he will be focused on the continued growth of Burford’s business. Travis has had a tremendous impact as a leader in law and legal finance, which includes the impact he made while previously at Burford. The legal field is generally slow to change but Burford remains committed to being at the forefront of its modernization, including changes related to equity investments in law firms and new technology such as AI. As a seasoned executive who has spent much of his career in legal finance, Travis shares Burford’s commitment to advancing the business of law, and we at Burford welcome his leadership and unique perspective as our business continues to grow.”

About Burford Capital

Burford Capital is the leading global finance and asset management firm focused on law. Its businesses include litigation finance and risk management, asset recovery and a wide range of legal finance and advisory activities. Burford is publicly traded on the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR), and it works with companies and law firms around the world from its offices in New York, London, Chicago, Washington, DC, Singapore, Dubai and Hong Kong.

For more information, please visit www.burfordcapital.com.

Nera Capital, a pioneering specialist funding provider to law firms, is pleased to announce a new strategic partnership with Fintex Capital, the innovative investment firm dedicated to private debt. As part of this partnership, Nera secured an initial £20 million investment from Fintex.

The demand for law firm financing is growing quickly, as more and more consumers look for redress from hidden commissions on car financing to housing disrepair. The new funding line will allow more consumers to have access to the justice they deserve as the financial barriers are diminished.

The partnership marks a significant milestone for both companies. It expands Nera Capital’s reach, diversifies its funding sources and enables it to bring the benefits of capital and expertise to a wider set of consumers. For Fintex, this is another landmark transaction, the 3^rd UK funding line of c. £20 million. This investment was fully funded by Fintex Capital’s flagship fund, Fintex Private Debt.

Aisling Byrne, Director of Nera Capital, said: “Fintex Capital’s investment enables the firm to accelerate its growth trajectory, further scaling its operations to provide crucial financial support to clients when they need it most. Along with being better positioned to ensure justice remains accessible, even against the most formidable adversaries, the additional funding line increases Nera Capital’s diversification.

The Fintex investment strengthens Nera’s financial base, diversifies our funding sources and allows us to explore new avenues in our market. It also enables us to scale our robust platform. We are pleased that our operations were once again endorsed by a prominent institutional investor.

Fintex made an excellent name for itself as a sophisticated, reliable lender in the UK and beyond. The Fintex team led by Sophie Batoua were a pleasure to deal with and the transaction was successfully executed in record time.”

Robert Stafler, CEO of Fintex Capital, said: “It comes as no surprise that demand for law firm finance is on the rise. This granular, insurance-backed financing provides vital funding to consumers when they need it most. It enables them and their lawyers to bring justice to families who without Nera’s support would be unable to seek redress.

Nera has a strong track record in its market, having successfully provided c. £200m in funding for UK consumer claims to date. We are delighted to see that our investment helps Nera solidify its position as a leader in its field. To us, this is just the beginning of a successful long-term partnership.”

Advisors: Nera Capital was advised by Walker Morris LLP, Mason Hayes & Curran LLP, and Copsey Murray Chartered Accountants. Fintex Capital was advised by Fox Williams LLP and Mason Hayes & Curran LLP

-ENDS-About Nera Capital: Established in 2011, Nera Capital is a specialist litigation funding provider with a presence in Manchester, Dublin, and The Netherlands. The firm is dedicated to supporting law firms and providing the financial resources necessary to pursue justice in both their Consumer and Commercial divisions.

Fintex Capital: (www.fintexcap.com) is a pioneering investment firm specialising in private debt. Since its inception, the firm has provided close to £400 million in private debt capital to borrowers across Specialty Finance and Real Estate Debt. Fintex is known for providing senior and mezzanine debt facilities to lending businesses in the UK and beyond; it also provides direct lending to asset-backed businesses and asset owners. The firm manages discretionary investment funds, as well as segregated managed accounts for various institutions.

Today marks the 15^th anniversary of the founding of Burford Capital, the leading global finance and asset management firm focused on law. In just 15 years, Burford has gone from a single $130 million investment fund to a $7.4 billion industry leader – with a 27x increase in its market capitalization.

Burford is fortunate to have a deep and continually growing bench of talented professionals from the world’s leading law firms and companies; we report below on the latest additions to the Burford team.

In recognition of that strong bench and a continued focus on our clients, Burford is today appointing Aviva Will, currently Co-Chief Operating Officer, as President. In her new role, Ms. Will’s focus will be predominantly on high-value, client-facing activities as we continue to expand our global relationships and the business evolves yet more towards complex financings with sophisticated corporate counterparties.

Burford is similarly appointing David Perla, also currently Co-Chief Operating Officer, into a new market-facing role of Vice Chair, focusing globally on Marketing, Public Policy, Industry Affairs and Public Relations, drawing on Mr. Perla’s experience and relationships in past leadership roles, including as President of Bloomberg Law.

Christopher Bogart, CEO of Burford Capital, says: “It should come as no surprise that Burford Capital continues to not only grow talent from within, but also to attract experienced senior professionals. In our 15^th year, my co-founder Jon Molot and I are incredibly proud of Burford’s successes and its extraordinary people. Jon and I are just as committed today as we were on day one to redefining and advancing the business of law.”

Burford has also recently added a number of senior professionals from top global corporations and law firms, including:

Andrew Farthing as a Director in Texas, responsible for managing matters in Burford’s US portfolio. Prior to joining Burford, Mr. Farthing was a Director at Apple and previously a senior litigator at Latham & Watkins.

Carrie Tendler as Special Counsel in New York, responsible for advising on the enforcement of judgments in cases backed by Burford with a particular focus on the YPF matter. Prior to joining Burford, Ms. Tendler was a Partner at Kobre & Kim and a litigator at Cravath, Swaine & Moore.

Josh Reed as Senior Vice President in Chicago, responsible for managing matters in Burford’s patent portfolio. Prior to joining Burford, Mr. Reed was Head of Global Litigation at the Sisvel Group and Chief IP Counsel at Allscripts.

Kate Tellez as Senior Vice President in Chicago, responsible for assessing and underwriting legal risk as part of Burford’s patent group. Prior to joining Burford, Ms. Tellez was a Partner at Steptoe.

Florencia Villaggi as Vice President in New York, responsible for assessing and underwriting legal risk in investor-state and international commercial arbitration. Prior to joining Burford, Ms. Villaggi was Counsel at Herbert Smith Freehills.

Josh Wood as Head of Investor Relations in New York, with responsibility for directing Burford’s investor relations activities. Prior to joining Burford, Mr. Wood was Head of Shareholder Relations at Patria Investments and previously Vice President at Carlyle.

Nicholas Sinigaglia has joined as Global Controller in New York as a key member of the finance management team. Prior to joining Burford, Mr. Sinigaglia was Chief Accounting Officer at Pie Insurance.

About Burford Capital

Burford Capital is the leading global finance and asset management firm focused on law. Its businesses include litigation finance and risk management, asset recovery and a wide range of legal finance and advisory activities. Burford is publicly traded on the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR), and it works with companies and law firms around the world from its offices in New York, London, Chicago, Washington, DC, Singapore, Dubai and Hong Kong.

For more information, please visit www.burfordcapital.com.

Law In Order, the leading provider of comprehensive document and digital solutions for the legal industry and government, is proud to announce the launch of its latest eBundle solution, utilising Lexel’s latest innovation GenAI technology. This revolutionary integration marks a significant advancement in legal technology, offering enhanced efficiency, intelligence, and collaboration for legal professionals across Australia, Asia, and the Middle East.

The new eBundle solution harnesses the power of Lexel’s GenAI capabilities to streamline evidence management and digital bundle preparation for eHearings. GenAI brings advanced generative AI functionality that provides deep contextual intelligence on case materials, enabling lawyers and legal teams to process and analyse evidence faster, with greater accuracy and insight.

For nearly a decade, Law In Order has worked closely with LegalCraft, the creators of Lexel, to bring unparalleled technology solutions to legal professionals. This new initiative further solidifies the partnership, as both companies strive to push the boundaries of what legal tech can achieve.

Rey Penalosa, Law In Order’s Head of eHearings: “The integration of Lexel’s GenAI into our eBundle solution is a game changer. We’re excited to offer our clients an ‘All in One, integrated’ tool that not only simplifies the preparation process but also enhances their ability to present cases with precision. This collaboration strengthens our commitment to delivering the most innovative legal technology solutions to the market.” 

Vamsi Madiraju, Chief Operating Officer at LegalCraft, added, “Australia has always embraced Lexel technology, and it’s the perfect market for us to launch GenAI. Law In Order has been an integral partner for us in this journey, and we are thrilled to collaborate with them on this exciting new offering. The integration of GenAI into Law In Order’s eBundle solution will empower legal teams with unprecedented capabilities.”

About Law In Order 

Law In Order is a leading provider of end-to-end document and digital solutions, specialising in document production, eDiscovery management, and specialist court services. With a strong focus on innovation, the company is dedicated to empowering legal professionals with the tools and expertise they need to excel.

About LegalCraft 

LegalCraft is the creator of Lexel, a leading evidence management platform used by legal professionals globally. Lexel’s GenAI capabilities enhance legal workflows by providing AI-driven contextual intelligence on case materials, improving efficiency and accuracy in evidence management.

Aperture Investors, an alternative asset manager and part of the Generali Investments platform, today announced that Luke Darkow has joined the firm to lead its new private credit Litigation Finance strategy. 

Darkow joins Aperture from Victory Park Capital, a global alternative investment manager, where he was a Principal and Portfolio Manager responsible for sourcing, analyzing, executing, and managing investments within the litigation finance asset class. Prior to Victory Park Capital, Darkow held roles at TPG Capital and Morgan Stanley. 

“With Aperture entering its next phase of growth, we see significant potential in specialty lending, particularly in litigation finance, which we believe remains a relatively underbanked asset class. Estimates suggest that the litigation finance market could double annually through 2035,” said Peter Kraus, Chief Executive Officer and Founder, Aperture Investors. “Litigation Finance is a niche, relationship-driven sector—and Luke is no tourist. His expertise in both private and public debt investments, his deep network of law firms and legal service providers, and his ability to source opportunities and raise capital will allow us to build out this unique offering at Aperture.”

Litigation Finance involves the provision of third-party capital to help finance law firms or plaintiffs pursuing legal claims in exchange for, or collateralized by, a percentage of proceeds received upon the successful resolution of legal disputes. Aperture’s Litigation Finance strategy will primarily provide structured loans to law firms backed by expected legal fee receivables from procedurally mature, settled, and/or short duration legal cases, targeting uncorrelated returns.

“I’m incredibly pleased to join Aperture and help drive the firm into new opportunities in private credit with this niche, asset-based lending strategy,” commented Darkow. “As Aperture expands its slate of strategies and products, I’m also attracted to the intellectual horsepower and best-in-class infrastructure within the broader firm.” 

About Aperture Investors 

Aperture is an alternative asset management firm offering credit and equity strategies in commingled and bespoke portfolios for institutional investors. Aperture’s mission is outperformance, and it is focused on identifying portfolio managers who it believes have a unique edge and can consistently deliver innovative, solutions-oriented investment results throughout market cycles. Since inception, Aperture has steadily grown its breadth of products, and as of August 31st, it manages approximately $4 billion. Its investment strategies are diversified across asset classes and geographies – each managed by a dedicated investment team – with distribution across North America, Europe, Middle East and Asia. 

Aperture Investors was founded in 2018 and is led by industry veteran Peter Kraus and by Generali, one of the largest global insurance and asset management providers. For more about Aperture, visit us at www.apertureinvestors.com.

Danny Kinnear, founder of EAKO Capital, leverages his experience with top financial institutions like Deutsche Bank, Nomura, and Litigation Capital Management to offer innovative financial solutions to corporates, law firms, and funders.  EAKO partners with Google Ventures and Visa-backed entities, as well as major banks, to provide:

• Rapid bank account setup (48-72 hours)
• Diverse funding options (on both a recourse and non-recourse basis)
• Competitive foreign exchange services (a demonstration of how much we can save you, look here)
• Forward credit lines for risk management hedging purposes
• FX options and structured solutions
• Risk management consultancy to resolve complex situations – through our extensive network we can find solutions to most currency problems

Company Name and Description:   EAKO Capital helps law firms, companies, and asset managers access a range of funding and financial risk management solutions.

Company Website:  www.eakocapital.com

Year Founded:  2022

Headquarters:   Supporting clients globally out of London, United Kingdom

Area of Focus:  Comprehensive financial support through multi-currency accounts, currency and interest rate hedging, cross-border & mass payment solutions, and the provision of access to funding, including litigation finance.

Member Quote: “EAKO combines deep banking expertise with technology to deliver intelligent, cost-effective currency and funding solutions to business and asset managers operating internationally.”

Aaron Winston is an author and the Strategy Director at Express Legal Funding, bringing over a decade of experience in the consumer finance industry. In recent years, Aaron has risen to be recognized as an expert in SEO and law firm content marketing, being featured in multiple case studies.

Aaron leverages his deep understanding of digital strategies to enhance Express Legal Funding’s online presence and brand authority with hundreds of thousands of unique website visitors annually. His approach combines analytical precision with creativity, making him a thought leader in the fields of pre-settlement funding and search engine marketing.

Company Name and Description: Express Legal Funding is a nationally recognized and trusted pre-settlement funding company and brand based in Plano, Texas, and is dedicated to providing fair, fast, and affordable financial support to claimants bringing personal injury and other tort claims.

Company Website: https://expresslegalfunding.com/

Year Founded:  2015

Headquarters:  5717 Legacy Drive, Suite 250, Plano, Texas 75024

Area of Focus: Pre-settlement Funding, SEO, Content Marketing, Law Firm Digital Marketing and Websites

Member Quote: Can a pre-settlement funding company really be a household name if most people aren’t even aware the industry exists?

The following is a contributed piece by Tom Webster, Chief Commercial Officer at Sentry Funding.

An EU stakeholder survey is gathering practical information on the operation of third-party funding across the European Union. The study, ‘Mapping Third Party Litigation Funding (TPLF) in the European Union’, was given an extended deadline of 3 September 2024.

Conducted by Civic Consulting and the British Institute of International and Comparative Law (BIICL), the research will help the European Commission analyse the legal framework and practical operation of litigation funding in the EU and make policy decisions in the area.

The survey seeks views from stakeholders with experience of third-party funding, including funders, lawyers, consumer organisations, other businesses, public authorities, members of the judiciary and others. As well as questions seeking to discover the extent of funding activity in each EU jurisdiction and typical levels of investment, it also asks for views on both positive and negative effects of litigation funding.

In relation to positive effects, the survey asks a number of questions including whether respondents have observed that current litigation funding practices lead to better access to the courts for parties who could not litigate without funding; whether there is a deterrent effect on companies that serve consumer markets due to the threat of mass claims relating to unsafe products or unfair practices; and whether respondents have seen a filtering effect on claims as those with a low chance of success will not be funded.

In relation to negative effects, questions include whether respondents have observed conflicts of interest; undue influence on decisions such as settlements and appeals; and the funding of frivolous claims.

The EU survey is just one of a number of projects currently examining the litigation funding sector. Also focusing on the EU market, the European Law Institute is undertaking a substantial research project with the aim of establishing a set of principles to identify the issues that should be taken into account when entering into litigation funding agreements.

Meanwhile in the UK, the Legal Services Board recently published a report on litigation funding in England and Wales (https://legalservicesboard.org.uk/wp-content/uploads/2024/05/A-review-of-litigation-funding.pdf), and the Civil Justice Council has embarked on a wide-reaching review of the sector (https://www.judiciary.uk/related-offices-and-bodies/advisory-bodies/cjc/current-work/third-party-funding/) which will include recommendations in relation to the future regulation of the industry.

Michelle Silvers is Chief Executive Officer and a Director of Court House Capital and leads the company’s business strategy, growth and operations across geographic markets. She oversees stakeholder relations with capital investors and all decisions pertaining to the company’s investment portfolio.

Michelle is a highly-respected leader in litigation funding. She co-founded the litigation funding industry in Australia in 1999 and has over 30 years’ combined funding and legal experience across commercial dispute resolution, insolvency, insurance and collective redress (class actions).

Michelle has played a crucial role in funding more than 200 legal disputes and is passionate about structuring capital and risk management solutions for clients and helping claimants gain access to justice.

In 2019 Michelle joined Court House Capital, quickly establishing the business as a funder of choice in Australia and New Zealand. Previously, she served as Managing Director and CEO of Litigation Lending Services Limited, where she pioneered portfolio funding and grew the business to become one of the most successful funders in the region. Her career also includes senior roles at leading international funders (Augusta Ventures and IMF Bentham, now Omni Bridgeway), global insurance firms (AMP, FAI General, Lawcover) and private legal practice (DLA Piper).

Michelle is a co-founder and Director of the Association of Litigation Funders of Australia (AALF) and is a regular speaker and commentator on industry developments. She holds a Bachelor of Arts and Bachelor of Laws from the University of New South Wales and is a Director of Court House Capital Management Limited.

Company Name and Description: Court House Capital is a leading litigation funder focused on cases in Australia and New Zealand. Court House Capital was established with a mission to provide financial and strategic support to parties seeking capital, risk management and access to justice. Our team is led by industry founders, with Australian based capital, and is renowned for expertise, agility and collaboration.

Company Website: courthousecapital.com.au

Year Founded:  2019

Headquarters: Sydney

Area of Focus: Litigation Finance

Member Quote: We offer cost and risk mitigation strategies for commercial clients and ‘a level playing field’ for those who cannot afford to pursue justice themselves. It is an honour to be co-founders of an industry that provides access to justice for so many, and to be the funder of choice for claimants and professional advisers. Our financial resources, industry network and knowledge has helped many claimants achieve successful outcomes.

Manolete (AIM:MANO), the leading UK-listed insolvency litigation financing company, today announces its audited results for the year ended 31 March 2024. 

Steven Cooklin, Chief Executive Officer, commented: 

“These annual results show that Manolete has now recovered strongly from the UK Government’s suppression of the UK insolvency sector that prevailed during the Covid period. The Company has returned to profitability and has continued its track record of consistent operational cash generation. That has been driven by a record number of 251 case completions in FY24.

The trading results for the new financial year, which commenced on 1 April 2024, clearly show that this positive momentum has continued: year to date, new case enquiries are running 22% ahead of FY24 and our in-house legal team has already completed 116 cases with an aggregate value of £11.8m (compared to this stage last year, where we had completed 93 cases for a total value of £6.3m). This is also reflected in our gross cash receipts where we have already collected £10.3m in the first five months of this financial year, compared to £8.7m for the whole six-month, first half period of the previous financial year.

“Widely reported, challenging, multiple, macro-economic factors including: high interest rates, persistent inflationary threats, stretched Government balance sheets and global conflicts, provide strong tailwinds and significant momentum for further growth. As the clear market leader in the UK insolvency litigation finance sector, the Company is exceptionally well positioned to take advantage of these conditions”. 

Financial (statutory and non-statutory) highlights: 

• Realised revenues on completed cases were £24.2m, a decrease of 10% (FY23: £26.8m) although FY23 included an exceptionally large, funded case completion of which £4.9m was recorded in realised revenue (total settlement £9.5m).
• Adjusting for that single exceptional case, FY24 realised revenues were 11% higher than FY23. 
• 92% of total revenues represented by realised revenues on fully completed cases (FY23: 129%). 
• Increase in the valuation of the cartel cases contributed £0.1m to gross profit in FY24 (FY23: £1.2m). 
• EBIT increased to £2.5m, which represented a positive change from an EBIT loss of £3.1m in the prior year. 
• Gross cash receipts from completed cases were £17.7m, a decrease of 34% (FY23: £26.7m, however, FY23 included the same one-off exceptionally large case completion, referred to above, which delivered gross cash receipts of £9.5m. Excluding that case, gross cash receipts rose by 3%). 
• The Company’s retained share of gross cash receipts from completed cases (after all legal costs and payments to Insolvent Estates) was £10.8m, a decrease of 18% (FY23: £13.1m) but again, the only reason for the decrease was the £9.5m exceptional case in FY23. 
• Cash generated from operations (after all completed case costs and all overheads but before new case investments and taxation) was £5.0m (FY23: £8.0m). 
• As at 31 March 2024, the Company had cash balances of £1.4m and borrowings of £13.7m resulting in a net debt of £12.3m (FY23: £0.6m and £10.5m, respectively and therefore a net debt of £9.9m). 

Operational highlights: 

• A record number of new case investments in UK insolvency cases, an increase of 18%: 311 in FY24 (FY23: 263). 
• A record number of 251 cases were completed in FY24 (FY23: 193 cases), with an average duration per case of 13.2 months (FY23: 15.5 months), generating a Money Multiple of 1.9x (FY23: 1.9x) and an IRR of 131% (FY23: 131%) (based on unaudited internal management information). 
• As previously reported, following the ending in April 2022 of the Covid-related emergency legislation to suppress UK insolvencies and the withdrawal of very substantial financial support to UK businesses by the previous Government, the number of UK insolvencies have been at record high levels. The first wave of these insolvencies has predominantly been the smaller and weaker “zombie” companies. Only in recent months have the larger company insolvencies, typically by way of Administration, returned to levels seen before the Covid pandemic. This has resulted in record high numbers of cases taken on by Manolete but the average case size is smaller than had been the case, pre-pandemic. By way of comparison: FY21 was the trading year that best reflects the completion values of cases acquired and funded before the Covid-19 impact (this is because, on average, cases take around 12 months to complete). In FY21, audited realised revenues were £24.4m from 135 cases: an average of £180k per case, which is close to double the average for FY24 of £96k. 
• ROI of 116% and Money Multiple of 2.2x from 933 completed cases since inception (based on unaudited internal management information). 
• Average case duration across the full lifetime portfolio of 933 completed cases is 12.7 months · 19% increase in live cases: 418 in process as at 31 March 2024 (351 as at 31 March 2023)

Current Trading 

• The first five months of FY25 have been buoyant:
  • Highest ever number of new case enquiries year to date: 348 (FY24: 286). 
  • 103 new case investments, which is broadly tracking the record 146 new case investments for the whole first six months of FY24. 
  • 116 case completions at an aggregate value of £11.8m (FY24: 93 case completions at a total value of £6.3m). o Gross cash receipts from previously completed cases is £10.3m, compared to £8.7m for the whole first six months of FY24. 
  • Net cash receipts (after all payments to insolvent estates and all associated external legal costs) are £6.5m year to date for FY25, compared to £4.6m for the whole first six months of FY24. 

Outlook 

• Given that the number of corporate insolvencies in the UK remain at record highs, the Company can look forward to a sustained period of growth. A strong recovery in the number of larger case investments signed in the second half of FY24 is also an encouraging indicator of future business strength.

A copy of the annual report and accounts will be available on the Company’s website shortly and will be posted to shareholders in due course.

The full announcement and results can be read here.